ISLAMABAD: The federal government has proposed a significant increase in defence spending for fiscal year 2025–26, allocating Rs2,550 billion—an 18% rise compared to the outgoing year. The move comes amid heightened regional tensions, particularly following recent military hostilities with India.
According to official budget documents, the Pakistan Army is set to receive Rs1,165 billion, up from Rs1,009 billion allocated in the current fiscal year. Revised estimates indicate that actual expenditures for the Army this year may reach approximately Rs1,058 billion.
The Pakistan Air Force (PAF) is also seeing a substantial budgetary boost, with an allocation of Rs520.74 billion for 2025–26, compared to Rs451 billion for the current year.
Similarly, the Pakistan Navy will receive an increased budget of Rs265.97 billion, rising from Rs230 billion in the outgoing fiscal year. Revised projections suggest the Navy's spending may exceed Rs238 billion by the close of this fiscal cycle.
The proposed increases in military funding reflect the government’s strategic focus on national security, operational readiness, and modernization of defence capabilities. These priorities have gained added urgency following the recent four-day conflict with India, which ended under a US-brokered ceasefire in May.
The budget for all three branches—Army, Air Force, and Navy—signals a continuation of the state’s defence-centric policy in the face of regional instability. While domestic economic challenges remain, officials have stressed the importance of maintaining strong deterrence and enhancing force capacity.
The overall defence allocation makes up a major portion of the federal budget for 2025–26, which also aims to trim non-essential spending while targeting 4.2% economic growth.
Analysts say the increase in defence funding underscores Pakistan's intent to remain militarily prepared while pursuing diplomatic engagement. However, critics argue that such a large increase may constrain fiscal space for other public sectors like health and education.
